Muthoot Microfin
The income from operation of Muthoot Microfin increased 20% to Rs 668.64 crore in Q1FY2027. Overall OPM improved to 67.91% in Q1FY2027 from 62.92% in Q1FY2026, leading to 29% jump in operating profit to Rs 454.10 crore. Other income increased 348% to Rs 1.97 crore. Interest cost increased 18% to Rs 246.74 crore. Depreciation declined 1% to Rs 10.87 crore. Provisions dipped 27% to Rs 91.85 crore. PBT jumped 1751% to Rs 106.61 crore in Q1FY2027 from Rs 5.76 crore in Q1FY2026. The effective tax rate was at 23.7% in Q1FY2027. Provision for tax was expense of Rs 25.27 crore, compared to reversals of tax provisions of Rs 0.42 crore. Profit after tax increased 1216% to Rs 81.34 crore in Q1FY2027.
Book value of the company was at Rs 171.4 and adjusted book value was Rs 162.5 (net of NNPA) end June 2026.
Business highlights
Gross Loan Portfolio (GLP) grew 18.0% yoy and 3.2% qoq to Rs 14,457 crore, reflecting strong business momentum.
Disbursements stood at Rs 2,645 crore, registering a growth of 48.9% YoY; marking the highest-ever first quarter disbursements in the Company`s history
Portfolio diversification continued, with the non-JLG portfolio increasing to 24%, driven by sustained growth in the Small and Micro Enterprise Individual Loan segment
Commenced gold loan disbursements under the referral and co-lending partnership with Muthoot Fincorp Limited during the quarter.
CRISIL upgraded long-term credit rating to CRISIL AA-/Stable from CRISIL A+/Positive, while reaffirming the CRISIL A1+ rating on its Commercial Paper
Digital collections increased to 40.5%, compared with 23.1% in Q1 FY26, reflecting continued customer adoption of digital payment channels.
Active customer base stood at 32.5 lakh, supported by a pan-India network of 1,671 branches and 15,639 employees.
Net Interest Margin (NIM) remained stable at 12.0%.
GNPA improved by 115 bps yoy and 19 bps qoq to 3.70%. NNPA reduced by 53 bps yoy and 10 bps qoq to 1.05%.
Credit Cost at 2.6%, below the guided range of 2.7-3%.
Average cost of borrowing reduced to 10.13% from 10.27% in FY26.
Liquidity position remained robust, supported by Rs 1,328 crore in liquid funds and HQLA-GSec investments. Rs 2,500 crore of Direct Assignment (DA) / Pass Through Certificate (PTC) sanctions, Rs 1,485 crore of unutilized term funding sanctions.
Capital adequacy ratio (CRAR) improved to 24.9% at June 2026 from 23.9% in March 2026.
Commenting on the performance Thomas Muthoot, Chairman & Non-Executive Director of Muthoot Microfin, said ?FY27 marks an inflection point for the microfinance sector, with improving collection trends and a more stable operating environment. Despite the seasonally softer first quarter, Muthoot Microfin delivered a strong start to the year, with Assets under Management growing 18% year-on-year to Rs 14,457.2 crore. The steady strengthening of our credit profile, reflected in the recent CRISIL credit rating upgrade, reinforces the strength of our business fundamentals and enhances our ability to access diversified funding at competitive costs. At the same time, we are also steadily transforming into a more diversified lending franchise. The improvement in our JLG and Non-JLG portfolio mix, the expansion of Small Enterprise Loan segment and the launch of gold loans through co-lending partnerships are important milestones in this journey. Together these initiatives help in building a portfolio that is more resilient across cycles.
FY27 is a defining year in this transition, one that lays the foundation for our larger Vision 30-30. With an aspiration to achievers 30,000 crore AUM, a more balanced portfolio mix and a Return on Equity of over 20% by FY30, we remain committed to building an institution that combines scale with resilience, innovation and responsible financial inclusion.?
Sadaf Sayeed, CEO, Muthoot Microfin, said ?We started FY27 on a strong note, recording our highest-ever first-quarter disbursements of Rs 2645 crore driving our AUM to Rs 14457.2 crore up by 18% YoY. This performance was primarily driven by the strong traction in our non-JLG segment which now contributes ~24% of total portfolio. During the quarter, we also commenced gold loan disbursements under our co-lending partnership with Muthoot Fincorp marking another important step in strengthening our diversified and secured lending portfolio. As we continue to grow, our focus remains firmly on maintaining the quality of our portfolio. Our collection efficiency improved to 97.97% during the quarter up by 497 bps year-on-year while X-bucket collection efficiency remained strong at 99.89%, reflecting the resilience of our portfolio and the commitment of our teams on the ground. Our consistent efforts have resulted in meaningful improvements in asset quality, with GNPA reducing to 3.70% in Q1FY27, down 115 bps yoy and credit costs moderating to 2.6%, well below our guided range of 2.7%-3.0% for the full year. The strength of our operating performance was equally evident in our financial results. Our Income grew 20.0% year-on-year to Rs 670.6 crore, while Pre-Provision Operating Profit increased 43.3% yoy to Rs 198.5 crore. Profit After Tax stood at Rs 81.3 crore, registering a year-on-year growth of 12x. These results reflect the strength of our business model and our continued focus on achieving balanced growth while maintaining profitability and portfolio quality. As we move through the year, our priorities remain unchanged. We will continue to deepen our presence across our existing markets, strengthen customer relationships, expand our diversified product portfolio and leverage technology to improve customer experience and operating efficiency. Supported by a stronger balance sheet, improving asset quality and a clear long-term strategy, we remain confident of delivering on our FY27 priorities while steadily progressing towards our Vision 30-30.
Financial Performance FY2026
The income from operation of Muthoot Microfin declined 7% to Rs 2369.57 crore in FY2026. Overall OPM eased to 65.61% in FY2026 from 67.28% in FY2025, leading to 10% decline in operating profit to Rs 1554.69 crore. Other income increased 305% to Rs 11.13 crore. Interest cost declined 6% to Rs 874.46 crore. Depreciation rose 1% to Rs 43.13 crore. Provisions dipped 58% to Rs 439.31 crore. PBT rebounded to Rs 208.92 crore in FY2026 from pre tax loss of Rs 288.90 crore in FY2025. The effective tax rate was at 18.5% in FY2026. Provision for tax was expense of Rs 38.65 crore, compared to reversals of tax provisions of Rs 66.38 crore. Profit after tax increased to Rs 170.27 crore in FY26 from net loss of Rs 222.52 crore in FY2025.
| Muthoot Microfin: Standalone Results | ||||||
| Particulars | 2606 (3) | 2506 (3) | Var % | 2603 (12) | 2503 (12) | Var % |
| Income from Operations | 668.64 | 558.62 | 20 | 2369.57 | 2561.69 | -7 |
| OPM (%) | 67.91 | 62.92 | 65.61 | 67.28 | ||
| OP | 454.10 | 351.46 | 29 | 1554.69 | 1723.62 | -10 |
| Other Income | 1.97 | 0.44 | 348 | 11.13 | 2.75 | 305 |
| PBDIT | 456.07 | 351.90 | 30 | 1565.82 | 1726.37 | -9 |
| Interest (Net) | 246.74 | 209.76 | 18 | 874.46 | 930.11 | -6 |
| PBDT | 209.33 | 142.14 | 47 | 691.36 | 796.26 | -13 |
| Provisions | 91.85 | 125.38 | -27 | 439.31 | 1042.32 | -58 |
| Depreciation / Amortization | 10.87 | 11.00 | -1 | 43.13 | 42.84 | 1 |
| PBT before EO | 106.61 | 5.76 | 1751 | 208.92 | -288.90 | LP |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 106.61 | 5.76 | 1751 | 208.92 | -288.90 | LP |
| Tax Expenses | 25.27 | -0.42 | PL | 38.65 | -66.38 | PL |
| PAT | 81.34 | 6.18 | 1216 | 170.27 | -222.52 | LP |
| EPS * | 19.1 | 1.4 | 10.0 | -13.1 | ||
| Equity | 170.5 | 170.5 | 170.5 | 170.5 | ||
| Adj BV (Rs) | 162.5 | 143.6 | 158.2 | 144.8 | ||
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 10, Figures in Rs crore, PL: Profit to Loss, LP: Loss to Profit | ||||||
| Source: Capitaline Corporate Database | ||||||
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